SOA Exam FM Sample Question 252
Study guide: Exam FM-2
Fund X accumulates at a force of interest of \delta_t = \dfrac{2}{1+2t}, where t is measured in years, 0 \le t \le 20. Fund Y accumulates at an annual effective interest rate of i. An amount of 1 is invested in each fund at time t = 0. After 20 years, Fund X has the same value as Fund Y.
Calculate the value of Fund Y after five years.
- A) 2.46
- B) 2.53
- C) 2.60
- D) 2.67
- E) 2.74
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